ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 14, 2018
1:30 p.m.
MEMBERS PRESENT
Representative Andy Josephson, Co-Chair
Representative Geran Tarr, Co-Chair
Representative John Lincoln, Vice Chair
Representative Harriet Drummond
Representative Justin Parish
Representative Chris Birch
Representative DeLena Johnson
Representative George Rauscher
Representative David Talerico
MEMBERS ABSENT
Representative Mike Chenault (alternate)
Representative Chris Tuck (alternate)
COMMITTEE CALENDAR
HOUSE BILL NO. 217
"An Act relating to the Alaska Food, Drug, and Cosmetic Act;
relating to the sale of milk, milk products, raw milk, and raw
milk products; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 217
SHORT TITLE: RAW MILK SALES; FOOD EXEMPT FROM REGS
SPONSOR(s): REPRESENTATIVE(s) TARR
04/07/17 (H) READ THE FIRST TIME - REFERRALS
04/07/17 (H) RES, FIN
04/12/17 (H) RES AT 1:00 PM BARNES 124
04/12/17 (H) Scheduled but Not Heard
04/13/17 (H) RES AT 5:00 PM BARNES 124
04/13/17 (H) -- Continued from 4/12/17 --
04/14/17 (H) RES AT 1:00 PM BARNES 124
04/14/17 (H)
04/17/17 (H) RES AT 1:00 PM BARNES 124
04/17/17 (H) Heard & Held
04/17/17 (H) MINUTE(RES)
01/31/18 (H) RES AT 1:00 PM BARNES 124
01/31/18 (H) Heard & Held
01/31/18 (H) MINUTE(RES)
02/07/18 (H) RES AT 1:00 PM BARNES 124
02/07/18 (H) Heard & Held
02/07/18 (H) MINUTE(RES)
02/14/18 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
ARTHUR KEYES, Director
Division of Agriculture
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Alaska Agriculture," dated 2/14/18.
HEIDI HANSEN, Deputy Commissioner
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Offered to provide additional information
during the presentation by the Division of Agriculture,
Department of Natural Resources.
AMY SEITZ, Executive Director
Alaska Farm Bureau, Inc.
Soldotna, Alaska
POSITION STATEMENT: Co-provided a PowerPoint presentation
entitled, "Alaska Farm Bureau, The Voice of Agriculture,"
[undated].
BRYCE WRIGLEY, President
Alaska Farm Bureau, Inc.
Delta Junction, Alaska
POSITION STATEMENT: Co-provided a PowerPoint Presentation
entitled, "Alaska Farm Bureau, The Voice of Agriculture,"
[undated].
SUZY CROSBY, Spokesperson
Cottonwood Creek Farm
Wasilla, Alaska
POSITION STATEMENT: Provided information on herd sharing.
NICOLE AREVALO
Homer, Alaska
POSITION STATEMENT: Testified in support during the hearing of
HB 217.
GEORGE PIERCE
Kasilof, Alaska
POSITION STATEMENT: Testified in support during the hearing of
HB 217.
ACTION NARRATIVE
1:30:49 PM
CO-CHAIR GERAN TARR called the House Resources Standing
Committee meeting to order at 1:30 p.m. Representatives Tarr,
Birch, Parish, Talerico, Rauscher, Drummond, Johnson, Lincoln,
and Josephson were present at the call to order.
HB 217-RAW MILK SALES; FOOD EXEMPT FROM REGS
1:31:28 PM
CO-CHAIR TARR announced that the first order of business would
be HOUSE BILL NO. 217, "An Act relating to the Alaska Food,
Drug, and Cosmetic Act; relating to the sale of milk, milk
products, raw milk, and raw milk products; and providing for an
effective date."
1:32:04 PM
ARTHUR KEYES, Director, Division of Agriculture, Department of
Natural Resources (DNR), gave his brief background information
and described the meaning of specialty crops such as produce.
He provided a PowerPoint presentation entitled, "Alaska
Agriculture," dated 2/14/18, beginning with an agenda on slide
2, and introduced a video of statements from three Alaskan
farmers.
1:36:54 PM
A short video was shown from 1:36 p.m. to 1:39 p.m.
MR. KEYES continued to slide 4, noting Alaskans consume 156
million pounds of poultry, pork, and beef annually, and produce
approximately 2.5 million pounds of beef and pork, [estimated as
of 2016], and poultry [estimated as of 2012]. He explained the
data for poultry is out-of-date and the division expects the
local numbers for poultry to increase dramatically. In regard
to dairy, as of 2017, Alaska has one dairy and he said because
Alaskans consume 32 million pounds of milk per year, dairy and
other sources of protein are products that provide an
opportunity for growth in agriculture in Alaska. Slide 5
indicated the number of farms in Alaska has increased from 570
in 1992 to 762 in 2012, which has led also to an increase in
livestock; livestock are a cornerstone of the agriculture
industry because livestock need grain and hay for feed. In
response to Representative Drummond, Mr. Keyes explained the
2017 Census for Agriculture is underway and the U.S. Department
of Agriculture (USDA) will release census data to the public
later in 2018.
1:46:20 PM
REPRESENTATIVE JOHNSON asked how the Census for Agriculture
defines a farm for its data.
MR. KEYES said a farm must generate some sales income to be
included in the census.
REPRESENTATIVE PARISH inquired as to the geographic breakdown of
the farms indicated on slide 5.
MR. KEYES speculated Alaska has three traditional centers of
agriculture: the Kenai Peninsula, the Matanuska Valley, and the
Delta Junction and Fairbanks area; however, farms are located
all around the state.
1:48:18 PM
HEIDI HANSEN, Deputy Commissioner, DNR, offered to provide
specific information on where farms are located.
MR. KEYES informed the committee since 1981 there have been no
positions in the division with the expertise and direction to
develop the livestock industry; in fact, Alaska only produces
1.5 percent to 1.6 percent of its consumption and he restated
the opportunity to grow the industry. He acknowledged the
division has existing programs which support the livestock
industry, such as land sales, loan programs, retail access, and
farmers' markets, but the programs lack important veterinary and
scientific knowledge (slide 6). Mr. Keyes said the division has
proposed a livestock program that would consist of two positions
- a veterinarian and a development specialist - who would meet
with producers, and collaborate with private sector
veterinarians, USDA, the Cooperative State Research, Education,
and Extension Service, USDA, the University of Alaska, and other
stakeholders. Further, the livestock program staff would
provide support for the development of the industry, provide
current reliable information, and advocate for the industry
(slide 7). He spoke to the importance of the proposed program.
REPRESENTATIVE PARISH asked where the program would be based and
whether staff would travel to support all agricultural programs
in the state, such as caribou herding and poultry raising.
MR. KEYES opined staff would be housed in Palmer. He advised
there are two veterinarians on staff at U.S. Fish and Wildlife
Service, U.S. Department of the Interior, for caribou, but
poultry would fall within the purview of the proposed program.
1:52:38 PM
REPRESENTATIVE DRUMMOND asked whether farmed reindeer are
considered livestock or wildlife, or if reindeer are the same as
caribou.
1:53:04 PM
MR. KEYES said reindeer and caribou are distinctly different; he
acknowledged the division, because of the lack of a livestock
program since 1981, is not involved with reindeer herding. In
further response to Representative Drummond, he was unsure as to
the impact of the livestock program related to reindeer herding.
Mr. Keyes continued to slide 8, noting producers have informed
the division they seek a one-stop shop for answers to questions
about feed, health, and importing livestock in Alaska's unique
conditions. The division can answer questions about land and
loans, but the veterinarian position is needed to provide a
science background, and he assured the committee both positions
would be busy. One goal of the livestock industry program is to
double production by 2020 (slide 9).
REPRESENTATIVE LINCOLN questioned whether an increase in
production is possible from existing farms.
MR. KEYES has heard some existing producers intend to increase
production, and growth is expected from existing and new farms.
Turning to food security, he pointed out 92 percent to 98
percent of food in Alaska is imported, thus every Alaskan
depends on barges, trains, boats, and trucks for food; however,
Alaska grown food is of higher quality, can be grown everywhere
in the state, and is an economic opportunity (slide 10).
1:59:56 PM
REPRESENTATIVE BIRCH expressed his concern about proposed
legislation that would increase the surcharge a municipality or
school district would pay for Alaska grown food, and questioned
whether it is necessary to increase the percentage from 7
percent to 15 percent for locally grown products.
MR. KEYES gave the example of imported milk available in
Anchorage for less than $4 per gallon, and local milk available
for $5.50 per gallon. He said the shipping cost of imported
milk is subsidized to the detriment of local dairies and Alaska
is a dumping ground for outside products.
REPRESENTATIVE BIRCH restated his objection to a 15 percent
surcharge.
MR. KEYES advised the Anchorage School District serves over
30,000 meals per day and switched from powdered potato flakes to
local potatoes to make mashed potatoes at an additional cost of
1.4 cents. Not all higher costs for local products will be 15
percent; however, even at 15 percent, health and economic
benefits to a community would offset the cost. Mr. Keyes
returned to food security, and said there are 40 farmers'
markets in Alaska supplied by innovative producers such as
indoor hydroponic growing systems and high tunnels, which can be
utilized in every Alaska community (slide 11). Food security
and access would be strengthened if each Alaskan spends $5 per
week on local food, which would put $188 million in Alaska's
economy, and the division seeks to connect Alaska farmers to
retail outlets and Alaska consumers (slide 12). As elsewhere,
Alaskans only eat 10 percent of the recommended consumption of
fruits and vegetables, and through the Alaska Farm to School
Program, the division has seen success in getting fresh products
into school lunches, which can happen throughout the state. In
addition to cost savings by using Alaska Grown products, the
program provides better food options for children (slide 13).
Everyone can support this program by participating in the Alaska
Grown $5 Challenge, by visiting a local farmer, greenhouse,
orchard, or garden, and he further described the success of the
Alaska Grown program, which will be expanded next season (slide
14).
2:09:58 PM
REPRESENTATIVE BIRCH asked for clarification as to which crops
have expiration dates.
MR. KEYES explained produce items expire "on their own" and do
not require an expiration date.
REPRESENTATIVE BIRCH asked whether marijuana [production] is
handled by the division.
MR. KEYES said marijuana is overseen by the Alcohol and
Marijuana Control [Office], Department of Commerce, Community &
Economic Development; after the passage of proposed legislation,
hemp will be a crop and thus overseen by the division. In
response to Representative Lincoln, Mr. Keyes said he would
provide Representative Lincoln additional information on
shipping subsidies.
REPRESENTATIVE DRUMMOND referred to proposed legislation related
to industrial hemp and advised the bill defines the maximum
tetrahydrocannabinol (THC) level allowed in industrial hemp.
REPRESENTATIVE TALERICO suggested the division compile the
information shown on slides 4 and 9 of the presentation for
clarification.
2:13:46 PM
The committee took an at-ease from 2:13 p.m. to 2:15 p.m.
2:15:09 PM
AMY SEITZ, Executive Director, Alaska Farm Bureau, Inc.,
informed the committee the Alaska Farm Bureau, Inc. (Farm
Bureau) is the largest agriculture advocacy organization in
Alaska, has 400 members, and seeks to promote policy that will
expand the agricultural industry in Alaska. A strong policy -
as directed by Farm Bureau members - will build farms, improve
food security, and stabilize local economies (slide 1). The
Farm Bureau's mission is to improve the economic well-being and
expansion of agriculture and to enrich the quality of life for
all Alaskans by expanding farming opportunities, educating
consumers, and securing the future of family farms and farmers
(slide 2). Ms. Seitz stated Alaskans produce 5 percent of the
food consumed, and without successful farms and ranches, food
security will continue to be threatened by natural disasters and
interrupted shipping. She pointed out farming includes other
industries that contribute to the local economy such as natural
fibers of wool, cashmere, angora, and qiviut, the peony
industry, and Rhodiola. She concluded expanding the
agricultural industry enriches the life of Alaskans through food
security and sustainable local economies.
2:18:50 PM
BRYCE WRIGLEY, President, Alaska Farm Bureau, Inc., added food
security has been a priority for the Farm Bureau for about 10
years and it has sought through various initiatives to reach its
ultimate goal: Alaska farms feeding Alaskans a balanced diet
for about 90 days following an emergency. For example, the
Centers for Disease Control and Prevention advise a food
transportation quarantine could be in effect for up to 90 days.
He advised a balanced diet grown in Alaska includes meat,
grains, dairy, fruits, and vegetables and should become part of
Alaska's distribution chain available in grocery stores.
REPRESENTATIVE JOHNSON asked whether there is a policy for food
distribution within the state, after products have reached
Alaska.
MR. WRIGLEY said food distribution within the state has only
been discussed in broad terms of community emergency planning;
he pointed out food grown in Alaska originates 1,800 miles
closer than products shipped from Outside, and would not be
affected by an emergency in the Lower 48.
CO-CHAIR TARR announced a statewide food policy meeting
scheduled for March 5, [2018].
REPRESENTATIVE DRUMMOND observed in Anchorage, Costco Wholesale
provides local meats and fish, but not local vegetables.
MR. WRIGLEY explained large chain stores usually purchase though
a distributor; for example, during the Alaska Grown $5 Challenge
23 Safeway stores opened to his products and he needed a
distributor for deliveries. Pertaining to Costco, he suggested
certain stores may have a policy that allows them to source
products, but generally a distributor is involved.
MS. SEITZ expressed her belief Costco is interested in local
products.
2:27:07 PM
MR. WRIGLEY continued to explain if Alaska products are part of
the food distribution chain - with a 90-day supply in bins,
feedlots, and storage bins - large storage vessels kept for an
emergency are unnecessary (slide 3). Slide 4 illustrated the
Alaska Food Pyramid, and he said all aspects of the food pyramid
can be raised in Alaska, including nutrition, fiber, fats,
vegetables, minerals, and vitamins. To achieve the goal, Alaska
could produce a 90-day supply of potatoes from 1,200 cultivated
acres; current production is 560 acres; in fact, a 90-day supply
of potatoes and carrots would not be difficult, but other
products need an increase in the market to create an opportunity
for farmers to increase supply (slide 5). Mr. Wrigley said
another important function of the Farm Bureau is to advocate for
policies to assist agriculture, which takes cooperation between
legislators, the administration, and farmers. Other states have
had many years to develop agricultural systems and processing
and to adjust to changing laws and policies. In Alaska, food
production and processing capacity is in its infancy and farmers
are challenged by federal policies and new proposals such as a
sin tax on meat, or restrictions on the ability to raise
livestock on one's farm. He stressed the Farm Bureau can be
relied upon to provide accurate policy recommendations for
agriculture and not personal opinion (slide 6).
2:32:53 PM
MS. SEITZ discussed a partnership with the division, the Kenai
Soil and Water Conservation District, and the Farm Bureau, that
resulted in the Alaska Grown $5 Challenge, and she explained $5
spent by every Alaskan each week on Alaska Grown products would
add $188 million to Alaska's economy (slide 7). The purpose is
to educate residents about products that are available; the
division involved retailers who successfully promoted the
program and the agricultural industry. Opportunities can also
be expanded through partnerships with legislators,
administrators, and policymakers to support small and beginning
farmers and ranchers in Alaska. Ms. Seitz opined HB 217 would
help smaller farmers and the cottage food industry access
markets and provide more options for consumers. Other aspects
of policy include state land issues, overregulation that burdens
farmers, and excessive taxes. Although the sale of raw milk is
controversial, it could result in more farms in the state;
another policy issue is a new sector of agriculture,
agritourism, and the liability of farmers who host farm visits,
"U-pick" farms, and school visits. She advised policy and
proposed legislation is discussed by Farm Bureau members at
their annual meetings.
CO-CHAIR TARR noted the agritourism issue may be incorporated
into HB 217.
MS. SEITZ introduced several farmers in the galley.
2:41:12 PM
REPRESENTATIVE TALERICO asked for an estimate of the current
economic impact of the Alaska Grown $5 Challenge.
MR. WRIGLEY was unsure.
MR. KEYES was unsure.
CO-CHAIR TARR recalled farmers introduced the idea of expanding
raw milk sales to her at the 2016 Farm Bureau annual meeting.
2:44:11 PM
SUZY CROSBY, Spokesperson, Cottonwood Creek Farm, said her goat
farm began herd sharing after 2003 when her goats produced more
milk than her family needed. In accordance with Alaska state
law, the farm now has several dozen regular herd share customers
who purchase a share of the herd, pay for a share of herd
expenses, and receive a share of milk. Ms. Crosby said those
who seek raw milk include those who believe it is perfect food,
who prefer to eat local products when possible, who wish to know
the farmer, and/or who have digestive issues. The farm does not
advertise, and participants are interested in additional
products, but current law only allows herd sharing of fluid milk
to members. She pointed out raw milk is highly regulated,
although there is food freedom legislation pending in Wyoming
and across the U.S., and in Maine raw milk laws allow licensed
producers to make cheese, yogurt, and other products sold on the
farmer's property. Ms. Crosby acknowledged raw milk is a
polarizing issue that garners support and opposition; however,
the greater issues are food freedom and choice for consumers.
She urged the state to be more encouraging to small farmers and
small producers who can supply local products to friends and
neighbors.
2:48:01 PM
CO-CHAIR TARR suggested Alaska could expand its existing laws to
follow the example set by Maine and allow producers to sell
individual containers [of raw milk] or make other products. She
pointed out imported cheese made from raw milk is available in
Alaska. Further, the Farm Bureau expressed support for
expanding raw milk sales provided inspections are required, and
the Department of Environmental Conservation urged [for
legislation that would require] producers to maintain a customer
database in the case a problem arises.
REPRESENTATIVE RAUSCHER asked how profits are divided in a herd
share.
MS. CROSBY explained herd share members pay an initial $40 fee
and a monthly maintenance fee for a share of the milk produced
from the herd, but members do not have rights to the animals.
In further response to Representative Rauscher, she clarified
the $40 membership fee purchases approximately a 10 percent
share of a goat in the herd, which is also the average amount of
milk. Meat or other products are not involved; the intent of a
herd share is to obtain fluid milk for members.
CO-CHAIR TARR questioned how herd share members divide the
quantity produced by the herd.
MS. CROSBY gave the example of a member who wants one gallon of
milk per week; the member would have a scheduled pick up day and
pay $75 per month for a shared maintenance fee and their share
of the milk.
REPRESENTATIVE DRUMMOND questioned whether the membership fee is
in addition to the monthly flat rate.
MS. CROSBY said yes, the monthly maintenance flat rate pays for
the care and feeding of the goats. She added that goat milk is
better for those who are lactose intolerant because
pasteurization strips milk of many digestive enzymes.
CO-CHAIR TARR observed herd sharing limits a member's choice as
to the quantity of milk. She invited public testimony [public
testimony was not closed at the previous hearing].
2:55:50 PM
NICOLE AREVALO said she was a resident of Homer and expressed
her support for HB 217. Ms. Arevalo opined the bill makes sense
for Alaska's economy and for those who prefer to buy locally
produced foods whenever possible at farmers' markets and at the
local grocery store. There is expanding interest in the
availability of local foods rather than from Outside and HB 217
would help consumers who are interested in locally grown and
wish to support the economy. Also, producers of local food need
more online outlets, such as the Kenai Peninsula Food Hub.
Further, online sales would help new businesses and small-scale
operations that offer jams and pickles, and would also keep
money from leaving the state. Ms. Arevalo noted online markets
do not prevent consumers from asking questions about products or
reduce food safety, but online forms can provide all the
information needed by producers and consumers. She concluded
the bill would also provide for more locally sourced food to be
utilized by schools and other state-sponsored agencies.
2:58:25 PM
GEORGE PIERCE expressed his support for HB 217. He said the
state needs to encourage growing, and support its agriculture
and dairy products, because in an emergency Alaskans may not get
food. He urged Alaskans to stop depending upon corporations and
others, and to make land available for gardening, dairy, and
game. Outside products do not have nutritional value; however,
high tunnels on the Kenai Peninsula are very successful. Mr.
Pierce urged for the state to give land to farmers and support
farming for fresh and healthy food.
3:00:24 PM
CO-CHAIR TARR closed public testimony. She introduced a
forthcoming amendment that would incorporate farm tours into
sports and recreational activities in order to limit the
liability [of farms conducting tourism activities].
HB 217 was held over.
3:01:52 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:01 p.m.